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Sixty North Gold Mining Ltd. (CSE: SXTY) (OTC: Pink: SXNTF) (FSE: 2F4) (the "Company" or "Sixty North Gold") Sixty North Gold is pleased to announce that it has signed an option agreement to acquire a 100% interest in 10 Mineral Claims totalling 2,394 hectares adjoining the 622 hectare Mon Property to the East and South. This substantial increase in the size of the Mon Property covers extensions of known mineralized trends.
The Company will pay the vendors:
| Year | Cash | Shares | Expenditures |
| Signing | $15,000 | 300,000 | $15,000 |
| Year 1 | $20,000 | 400,000 | $80,000 |
| Year 2 | $30,000 | 500,000 | $120,000 |
| Year 3 | $60,000 | 500,000 | $200,000 |
| Year 4 | $150,000 | 700,000 | $300,000 |
| Year 5 | Nil | Nil | $300,000 |
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The Vendors retain a 2% NSR, half of which may be purchased any time prior to commercial production by the Company for $$1,000,000. A minimum refundable $25,000 payment against the actual NSR payable shall be made after year seven.
The Mon Property is a permitted past producing gold mine that hosts the high-grade A-Zone (past production 15,000 ounces of gold from 15,000 tonnes of ore between 1989-1997). Drilling confirms mineralization extends at shallow depths below the old stopes on this "Discovery Mine" analogue. In addition, shear zone-host gold mineralization has been trenched at several location on the Mon Property yielding results of 7.33 gpt gold over 6.0 m (true width (see NR September 22, 2018)). This is similar in nature to, and hosted in the same rocks as, the world-class deposits at the Con and Giant Mines in Yellowknife. A recently a silver- and gold-rich volcanogenic massive sulphide deposit on the Mon Property has been trenched over a 120m strike length yielding results including 203 gpt silver, 1.0 gpt gold, and 1.55% combined lead and zinc. A VTEM Plus© geophysical survey to trace this discovery was completed and 3D inversions completed by Mira Geoscience Ltd. has clearly identified six additional larger and stronger conductive anomalies within the same strata, all of which are beneath lakes and swamps. The shear zone and VMS targets can be projected onto the Hangstone Property.
Dr. D.R. Webb Ph.D., P.Geol., P.Eng. reports, "We are pleased to consolidate a most prospective and under-explored land in the Yellowknife Gold Belt. The prospector interests in the area have been very focused, and have identified dozens of showings and occurrences, many with multi-ounce gold values. While these are not NI43-101 compliant to report as they lack QA/QC support, we have reviewed the original laboratory reports and have no reason to question the validity of the sampling. In addition, during property visits in the past, Webb has observed evidence of VMS mineralization on the newly acquired land. None of the shear zone targets on the Mon or Hangstone Properties, nor have any of the VMS targets within the favourable strata ever been drilled."
John Campbell reports, "We have expressed our interests in this property over the past few years and know its addition to the Mon Property significantly expands our opportunities. Our proximity to infrastructure by virtue of being 25 km north of the Bluefish Hydroelectric Power Plant, 32 km north of all-weather roads, and 45 km north of the capital City of Yellowknife make this a very accessible project. Our focus on restarting the Mon Gold Mine is our first priority, and now we can more efficiently use the infrastructure and people we will have on site."
Dr. D.R. Webb, Ph.D., P.Geol., P.Eng. is the Qualified Person within the meaning of NI 43-101 and is responsible for the technical details of this release.
Option Agreement with New Discovery Mines Ltd. (NDML) - Payment Extension
The due date of October 31, 2020 from the Third Amending Agreement, between the Company and NDML, for a payment of $1,500,000 has been extended to November 30, 2020. To date $818,390 of this amount has been advanced by the Company to NDML, leaving a balance of $681,610 owing. A further approximately $2,100,000 remains payable by April 30, 2021 to complete the earn-in obligations.
About the Company
Sixty North Gold Mining Ltd. is focused on restarting the high-grade past producing Mon Mine, 40 km north of Yellowknife, NWT, within the prolific Yellowknife Gold Camp. Other targets on the property include recently discovered silver- and gold-rich VMS targets as well as the giant shear zone-hosted gold mineralization. Permits to explore, mine and mill are in place. The Mon Gold Property consists of 11 contiguous mining leases and 3 mineral claims, comprising an aggregate 1,536.92 acres, located in the South MacKenzie Mining District, NWT. For more information, please refer to the Company's profile on SEDAR (www.sedar.com) or visit the Company's website at www.sixtynorthgold.com.
ON BEHALF OF THE BOARD OF DIRECTORS
s/ "David Webb"
David Webb,
President & Chief Executive Officer
For further information, please contact David Webb 604-818-1400
Statements about the Company's future expectations and all other statements in this press release other than historical facts are "forward looking statements". Such forward-looking statements are based on numerous assumptions, and involve known and unknown risks, uncertainties and other factors, including risks inherent in mineral exploration and development, which may cause the actual results, performance, or achievements of the Company to be materially different from any projected future results, performance, or achievements expressed or implied by such forward-looking statements. Further details about the risks applicable to the Company are contained in the Company's Prospectus dated January 19, 2018 available on SEDAR (www.sedar.com), under the Company's profile.
THE CANADIAN SECURITIES EXCHANGE HAS NOT APPROVED NOR DISAPPROVED THE CONTENT OF THIS PRESS RELEASE.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/68456